EUROPEAN SHARES
Stock benchmarks slid lower in Europe on Friday despite a positive trading session overnight in Asia, highlighting the current volatile nature of market sentiment towards risky assets.
Pessimism still prevails for EU stock investors, mainly weighed down by a disappointing earnings season and continuing geopolitical concerns.
On the monetary front, traders didn't find any bullish catalyst from the ECB yesterday after Christine Lagarde announced the central bank was holding its three main interest rates unchanged without giving any significant clues for the coming meetings.
With that in mind, even if share prices have become much more attractive in the last part of 2023, the uncertain environment still makes it hard for investors to find good reasons to buy.
Trader focus will likely shift towards the other side of the Atlantic ocean today, with the highly anticipated US PCE deflator data, a key metric for the Fed's monetary policy, ahead of next week's key FOMC meeting.
For now, spiking bond yields in the US and Europe do not provide an ideal environment for bull stock traders today, although this could change throughout the trading session.
The STOXX-50 still consolidates inside its short-term triangle pattern, highlighting the uncertainty of market sentiment for the end of the week.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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